Results Presentation 1H FY18 23 February 2018 Contents 1 1H - PowerPoint PPT Presentation

ASPEN GROUP LIMITED Results Presentation 1H FY18 23 February 2018

Contents 1 1H FY18 Highlights 2 Financial Results 3 Portfolio and Acquisitions Update 4 Outlook 5 Appendices

1 1H FY18 Highlights 3

1H FY18 Highlights 1.1 Core assets revenue and earnings growth continues through acquisitions program PORTFOLIO FINANCIALS CAPITAL MANAGEMENT Core assets earnings growth NAV increase Zero debt balance sheet • • • Core accommodation asset revenue Finance facility in place (June 2020 NAV increase of 1.0 cps (pre 5.0 cps growth $2.3m (32%) and operating expiry) special capital distribution) despite earnings growth $0.6m (23%) in line with acquisition cost impact of 2.1 cps • Security buy-back activity continued with acquisitions • a further 958k of stapled securities being 47% Core assets growth achieved • Decline in non-core earnings of $0.7m in bought back for a consideration of $1.0m • Koala Shores Holiday Park, NSW and line with divestment of Spearwood South • Special capital distribution of 5.0 cps Darwin FreeSpirit Resort, NT acquisitions industrial property following successful divestment of settled during the period. Respective Spearwood South industrial property considerations $10.2m and $19.5m • 4 independent revaluations undertaken for assets resulting in a $4.7m uplift in value across the portfolio • Successful divestment of $34m of assets held for sale • Pre-sales activity and pre-development works both underway at Four Lanterns Estate 4

2 Financial Results 5

Key performance metrics 2.1 Performance reflects group transition through acquisitions program 1H FY18 1H FY17 Change Statutory Loss Operating Performance $m $m % • Current year impacted by Statutory profit / (loss) (0.9) 0.5 (280%) – Investment driven acquisition and transaction costs $2.1 million – Legacy assets liabilities, provisions and expenses Profit from operations $0.5 million Accommodation 4.4 3.4 29% Profit from operations Non-core 0.8 1.6 (50%) • Contribution increase of $1.0 million from acquisitions in the portfolio offset by non-core revenue decline of $0.8 Total gross profit 5.2 5.0 4% million following Spearwood South divestment Operating expenses (2.5) 4% (2.6) • Result includes onboarding expenses of $0.13 million Earnings before interest, tax and depreciation (EBITDA) 2.6 2.5 4% Operating earnings Depreciation and amortisation (0.7) (0.5) 40% • $0.7 million – decrease primarily due to reduced Net Financial income / (expense) (0.1) 0.5 (120%) contribution following Spearwood sale in September 17 Operating profit before tax 2.5 (28%) 1.8 • Counter cyclical asset Darwin FreeSpirit Resort, Income tax expense - - - acquired in its low season, expected to contribute strongly in its peak season (June to September) Operating profit after tax 1.8 2.5 (28%) Distribution 1H FY18 • Distribution CPS 2.1 cps in line with comparative period $m Operating profit after tax 1.8 1.8 Add: Property depreciation 0.7 0.6 Operating cash earnings 2.5 2.4 Distribution 2.1 Payout Ratio 88% 6

Reconciliation of statutory profit to operating earnings 2.2 1H FY18 1H FY17 $m $m Statutory profit / (loss) after tax (0.9) 0.5 Tax benefit - - Statutory profit / (loss) before tax (0.9) 0.5 Change in fair value of PPE through profit and loss (0.1) 0.9 Finance costs 0.1 0.1 Transaction and acquisition costs 2.1 0.7 Other expenses 0.4 (0.4) Loss from discontinued operations 0.2 0.7 Operating earnings 1.8 2.5 7

Financial position 2.3 December 17 June 17 Change Balance Sheet Accommodation assets $m $m $m • Two acquisitions (Koala Shores and Darwin FreeSpirit Resort) settled for a total of $29.7 Accommodation assets 1 104.7 71.2 33.5 million. Assets held for sale 4.3 35.5 (31.2) Cash Cash 16.8 22.7 (5.9) • Cash utilisation of $5.9 million in 1H FY18 – Distributions paid - $2.5 million Debt - - - – Capital returns - $5.1 million – Share buyback - $1.0 million Gearing % - - - Offset by – Operating cash flows - $3.0 million NAV 119.3 124.6 (5.3) NAV $ per security 1.18 1.22 (0.04) NAV • NAV increase of $0.01 to $1.18 per security MOVEMENT IN NAV PER SECURITY pre special capital distribution 1.60 • Increase primarily attributed to 0.05 – Fair value increase in accommodation (0.31) 1.50 assets $4.7 million - $0.05 per security 1.40 0.29 Offset by – Acquisition and due diligence costs 1.30 (0.01) (0.01) written off $0.02 per security 0.05 1.20 – Ordinary distributions $0.02 per security • Special capital distribution $0.05 per security 1.22 1.18 1.10 1.17 1.00 FY17 Special capital NAV post capitial Accommodation Fair value Assets held Cash Liabilities 1H FY18 distribution distribution Assets movments for sale 1. Includes $0.250 million (FY17 $1 million) in unrecognised non – statutory adjustments 8

3 Portfolio and Acquisitions Update 9

Portfolio 3.1 47% growth in core assets achieved through tourism park acquisitions 31 December 2017 $m % 30 June 2017 $m % • Two high quality acquisitions settled and Core Core operations assumed in 1H FY18 – Koala Shores $10.2 million Retirement 33.5 31% Retirement 30.9 29% – Darwin FreeSpirit Resort $19.5 million Tourism 60.9 57% Tourism 30.0 29% • 4 independent revaluations undertaken: Workforce Accom. 10.3 10% Workforce Accom. 10.3 10% – Adelaide Caravan Park – Tomago Van Village 104.7 98% 71.2 68% – Mandurah Gardens Estate – Aspen Karratha Village Non-core Non-core • $4.7m uplift in value was recognised across the Held for Sale 2.5 2% Held for Sale 33.7 32% portfolio. 2.5 2% 33.7 32% • Notable firming in cap rates within revaluations approximately 75-100bps for the Total Property 107.2 100% Total Property 104.9 100% tourism/retirement assets • 2 Non-core assets sold ~ $32 million • 1 Remaining non-core asset contracted for sale conditional upon final DA approval which is Retirement 9% 2% Retirement nearing completion Tourism Tourism 29% 32% 32% Workforce • Workforce Inventory recycled during the period Held for Sale Held for Sale $107m $105m Inventory 1H FY18 Settlements 1 home 10% 57% 29% Commission based sales 3 homes Pending development / refurbishment 2 homes 10

Acquisition: Darwin FreeSpirit Resort 3.2 Aspen’s largest addition to date to its tourism portfolio Location 17km east of Darwin NT and located on Stuart Highway. Gateway to Kakadu and Litchfield National Parks Close proximity to new Palmerston regional hospital (opening 2018) Facilities RETIREMENT CORPORATE Full tourist park with a fully licensed food and beverage operation TOURISM 3 resort pools, BBQ and picnic areas, jumping cushion, conference and events facilities Inventory 430 high quality sites; Cabins 149 Sectors Campervan/Camping 281 Stay duration Operating capability Opportunity Earnings growth potential through • expanded F&B operation catering to guests, locals Purchase Value per site Value per ha and events Purchase date State Yield Sites Area (ha) Land tenure price ($m) ($k) ($m) • continued development of business partnering and Dec-17 NT 19.5 10.0% 430 45.0 10.8 1.8 Freehold guest relationships Reviewing the feasibility of using 10 gaming machine licenses onsite (included in the purchase price) Recent comparable transactions Purchase Purchase Value per Value per ha Property State Yield Sites Area (ha) date price ($m) site ($k) ($m) Emerald Beach Holiday Park Nov-15 NSW 12.5 7.7% 125 100.0 4.3 2.9 QLD 50 8.5% 372 13.0 3.8 Cairns Coconut Holiday Resort Feb-17 134.0 Big4 Bonny Hills Caravan Park May-17 NSW 13.5 9.0% 90 150.0 3.4 4.0 11 11

Acquisition: Darwin FreeSpirit Resort 3.3 Park map

Acquisition: BIG4 Koala Shores Holiday Park 3.4 Central Coast, NSW (2hrs North of Sydney) Location 45km from Newcastle, 25km from Tomago Van Village – establishes NSW Central Coast cluster. 15 minutes from Newcastle airport Facilities Full tourist park, water frontage, newly renovated cabins and excellent park presentation RETIREMENT CORPORATE Inventory 108 sites including TOURISM 35 cabins Opportunity Earnings growth potential via leveraging of group distribution capability and clustering with Tomago Sectors Van Village Stay duration Operating capability Purchase State Purchase Ingoing yield Value per site Value per ha Land Sites Area (ha) date price ($m) (excl. acq. costs) ($m) ($m) tenure Freehold/ Sep-17 NSW 10.2 9.50% 143 71.0 6.5 1.6 Leasehold Recent comparable transactions Purchase Purchase Value per Value per ha Property State Yield Sites Area (ha) date price ($m) site ($k) ($m) Emerald Beach Holiday Park Nov-15 NSW 12.5 7.7% 125 100.0 4.3 2.9 QLD 50 8.5% 372 13.0 3.8 Cairns Coconut Holiday Resort Feb-17 134.0 Big4 Bonny Hills Caravan Park May-17 NSW 13.5 9.0% 90 150.0 3.4 4.0 13 13 13